Bangladesh's export earnings take a hit

Exports earnings dropped in July on a month-on-month basis, though the political climate has been better this year.

The first month of FY 14-15 saw a 1.37 percent drop in exports compared to the same period of FY 13-14. It also fell short by 2 percent of the targeted earnings.

Export income rose by 12 percent in FY 13-14 from the previous fiscal amid worldwide criticism after the deadly Rana Plaza collapse and Tazreen Fashions fire.

Garment factory owners' platform BGMEA President Atiqul Islam is far from happy with the negative trend.

But economist Zaid Bakht says there is nothing to worry about the figures of a single month.

According to figures by the Export Promotion Bureau (EPB) released on Monday, exports amounted to $2.98 billion in July this year, which was $3.02 billion in July last year.

The export target for FY 14-15 has been set at $33.2 billion while the target for July was $3.04 billion.

The BGMEA says the falling export income is a proof of a 'conspiracy' against the industry.

"We disburse workers' salaries by the 5th or 6th of each month. Still strikes are being called, factories are being damaged and set on fire," BGMEA president Islam told bdnews24.com on Monday.

According to the business leader, the fall is due to the 'conspiracy' that eroded buyers' confidence in Bangladeshi products.

File Photo

Islam said he believed the negative trend would prevail in August and September as well.

"Export growth had never before fallen in July. The beginning of this fiscal is marred by negative growth due to conspiracies hatched abroad. We are disappointed."

Referring to the recent crisis over the Tuba Group workers' dues, Islam said: "When we were disbursing salaries of Tuba workers, labour leader Moshrefa Mishu issued negative statements about the industry to foreigners in the name of hunger strike.

"This proves that there's a conspiracy against our industry."

Bangladesh Institute of Development Studies (BIDS) Research Director Zaid Bakht, however, sees the fall as an 'isolated' case.

"The overall scenario should not be judged by a single month's data. Export growth might register a negative trend in one or two months for any reasons," he said on Monday while speaking to bdnews2.com.

Bakht rejected the BGMEA president's 'conspiracy theory', saying: "Exports grew by 12 percent in the previous fiscal despite many odds."

Exports earnings amounted at $30.18 billion in FY 13-14.